What You Need to Know About the DOJ's Cryptocurrency Enforcement Framework

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Last week Attorney General William Bar announced the publication by the Department of Justice of cryptocurrency enforcement framework what is in the framework and how will it be used? Does it change anything about the way law enforcement has been going after crimes involving cryptocurrency? Well I don't rule that it changes anything, but it is very significant in another away a number of ways. So first of all, the cryptocurrency enforcement framework is a seventy plus page document issued by DOJ on specifically by the Attorney General Cyber Digital Task Force a week ago today on October Eighth and it is a self described comprehensive overview of the emerging threats and enforcement challenges associated with the increasing prevalence and use of currency. To details, relationships that the Department of Justice has built with regulatory enforcement partners both within the US government and around the world and then outlines departments, response strategies and for my purposes. I personally find the last part of where the framework talks about how the department has responded to crypto currency the most interesting. And so in general, what are the main takeaways in terms of the significance of the Attorney General Publishing Document? Well I while I think just the fact that the Attorney General Department of Justice has published this document is itself significant? It shows that Crypto is something that DOJ's focusing on and also perhaps even more important that DOJ wants the world to know that Crypto is something that it's focused on. I pull a couple of about key takeaways from the framework First of all DOJ seems to be still somewhat skeptical of Crypto So in the first part of the framework there's a section on legitimate uses crypto, which runs about a few paragraphs, and then there's a section that is titled Illegitimate, uses which runs to more than eleven pages And if you look closely at the legitimate uses section. It's careful not to come out and actually say that there are any legitimate uses at all. It uses language like in here on quoting Laura a cryptocurrency advocates maintain that a decentralized distributed and secure cryptocurrency holds great promise for legitimate use proponents cryptocurrency contend that by eliminating the need for financial intermediaries to validate and facilitate transactions. CRYPTOCURRENCY has the potential to minimize transaction costs and to reduce corruption and fraud. Some advocates claim that crypto currency may in the future facilitate micro payments. Others believe that the privacy associated with crypto currency through raising significant challenges for law enforcement though raising significant challenges for law enforcement can have valid and beneficial uses of reading between the lines. I think You can detect a certain amount of skepticism about crypto even though it's not nearly as new as it was at one time. So, when it comes to the DOJ, what are the main crimes that they're looking at when it comes to cryptocurrency? Well the first part of the report or the framework actually lays out. Three categories of crime. So one is the use of Crypto as he man or to siltation for lissette activities. So for example, on taking Crypto as payment for illegal drugs over legal weapons or child pornography or using crypto to engage in terrorist financing that's category one according to the framework. The second category according to the framework is using crypto to engage in money laundering or hide assets from tax authorities in the third, it's crimes against the crypto marketplace itself like hacking exchanges. And there's a section of the framework that goes through all of the laws that DOJ can use to counter this kind of activity and they're more or less. What you would expect the fraud statutes. The Money Laundering Statutes the terrorist

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